While
the Observation Post usually addresses branding issues on a national
scale, this installment focuses on a local phenomenon that's consistent
across the country--the lack of branding in car dealership advertising.

Buying
a car is said to be the second biggest purchase, next to a home, in
an individual's life. So why are dealer ads in wild contrast to the
warmth and sophistication real estate ads project?

From
coast to coast, the Automotive sections in daily newspapers are filled
with full-page ads visually screaming for attention with giant headlines,
prices, starburst violators and goofy cartoon mascots.

The only
rationale for these garish graphics is, perhaps, to achieve the design
equivalent of the banners and balloons decorating dealer lots and
showrooms.

Until
I turn up any research supporting the effectiveness of the conventional
cluttered, multi-car pile up approach to dealer newspaper ads, I can
only attribute its use to herd instinct.

Giving
credence to this assumption is the fact that upstart car seller CarMax
has quickly created a branded presence in the Automotive section that
clearly distinguishes it from the surrounding local dealership eyesores.

Ultimately,
this "buy now" hysteria and the accompanying "me-too" claims of "unbeatable
deals" neutralizes the entire category into a commodity.

It's
strange how, in an image-driven field like automotive advertising,
brand building breaks down at the point of sale level.

The task
of brand building is left solely to manufacturers' ad campaigns. These
beautiful celebrations of sheet metal are clean and uncluttered in
both broadcast and print.

Newspaper
versions, which dealers are allowed to tag with tiny type, generally
feature a single car occupying the space a dealership would cram with
a couple dozen vehicles.

The only
down side to manufacturer's ads is that they tend to all look the
same (currently with a mandatory slammin' dance track on TV spots).

Apparently,
the hope is that prospects will be so impressed by flashy national
image campaigns that only location and perhaps a personal recommendation
remain as factors in deciding where to buy a car. Never mind who's
selling it.

Further
contributing to the commodification of local dealerships is the control
manufacturers hold over special deals and rebates. One dealership's
"unbeatable deal" on a particular make and model is the same as a
competitor's down the street. So what's the point of shopping around?

Manufacturer's
are also calling the shots on the regional advertising level. Until
the late 80's, these promotion-driven campaigns were controlled by
dealerships who contributed a percentage of their sales to an advertising
fund. While they still pool their money in this manner, how it's spent
is dictated by car manufacturers and their national agencies.

While
this lends a element of consistency to an automobile's brand image,
it further removes dealerships from a branding mindset.

This
atmosphere of overwhelming manufacturer control has produced a generation
of passive dealerships that devoid of personality.

Some
car brands, like Land Rover, don't even allow dealerships to so much
as mention their names. They are not worthy. Dealerships are merely
given the privilege of selling the cars in a protected geographic
area.

Gone
are they days of dealers like the legendary Cal Worthington. In his
pioneering TV spots, Cal, duded up in a cowboy suit, would literally
stand on his head to beat anybody's deal. He'd host late night movies
from his car lot with a rotating menagerie of animals (including a
tiger) that posed as "his dog Spot."

Corny?
Yes but this consistent branding effort made an indelible impression
on car buyers in Southern California. (Cal, now in his early 80s,
is still producing spots).

Besides
some direct descendants of Cal Worthington, like Chicago's Mad Max
Madsen, not many car dealers use their personalities as a branding
tool any more. They're just names on a sign or ad. Most
are too timid to make any claim or embrace a branding strategy.

The vague
marketing needs of some noncommittal dealerships are being met by
auto advertising syndicators who peddle the same bland ads around
the country as templates for dealerships to put their names on.

Other
dealerships take a tip from David Ogilvy, who said, "when you have
nothing to say, sing it." They've composed jingles that amount to
little more than a recitation of the cars they carry and their location.
Name, rank and serial number.

At least
jingles, used consistently, build brand equity. All too often, dealerships
just hand off their budgets to quasi-ad agencies who are merely brokers
more concerned with buying media rather than what they're filling
it with. And it shows.

Things
don't have to be this way. Car dealerships are essentially retail
outlets. And as Target has skillfully demonstrated, it's possible
for a retailer to promote a diverse range of national brands without
losing their identity in the process.

However,
to do so, one needs a strategy. And that's something auto dealerships
don't seem to put a lot of faith in. Or have a lot of patience with.

Apparently,
many can't think beyond the next sale. Which is a shame since they
have access to resources that can both brand them and build sales
for years to come.

I'm referring
to the wealth of information in their data bases. All the people who
have not only purchased cars from them but also those who have visited
their showroom or have had service work done.

Through
mailed questionaires or phone calls, dealerships could uncover the
mystery of why people do business with them rather than the guy down
the street. These insights could reveal the foundation of a solid
branding campaign.

And once
a campaign is developed, they can turn to their customers once again
to measure its effectiveness in generating and converting leads.

Besides
a source of information, a dealership's database is also a source
of lasting relationships. Generally overlooked, these can be cultivated
into repeat business.

Direct
mail would certainly play a part in this. But instead of using the
preprinted postcards provided by manufacturers for dealerships to
stamp their names on, mail pieces specifically promoting the dealership
should be created.

Besides
service promotions, mailing pieces celebrating birthdays, holidays
and other personal events should also be part of this long term effort.

Dealerships
would do well to study the techniques of car salesman Joe Girard.
(His books have been on the market for years and should be required
reading in the industry.)

While
the Detroit Chevy dealership Joe worked in was undistinguished, Joe
transformed himself into a one man brand. This guy was into permission
marketing decades before it became a catch phrase.

His innovative
sales system earned him the title "World's Greatest Salesman" by the
Guinness Book of Records for 12 years in a row (up until he retired).
Talk about excelling in a commodity market.

I'm unaware
of any dealership that has extrapolated Joe's winning system into
a full scale branding campaign. The opportunity is certainly there.
Guess they're all asleep at the wheel.